Consolidate Credit Card Bills?

"Credit Repair Starts With Accepting
   Responsibility And Taking Action..."

.....Should you consolidate credit card bills?  Well, think about this.... You made a promise! 

Now, most people don't think of it this way, but every time you borrow money. or buy something on credit. you are signing a contract.  In that contract you are promising to pay the money you owe according to the terms of the contract.

When your payments are late... or you stop making payments you are breaking your promise and in default under the terms of the contract.

When you break that promise, even in a small way,  the person or company that extended credit to you assumes that you no longer have the means to pay your debt as you promised.  That's bad enough, but don't let the situation get even worse by lack of action.  You may want to consolidate credit card bills, but will cover that in a moment.

Let Lenders Know You Will Pay

If you find that you are no longer able to keep your promise, then contact the lender and explain your situation.  Be honest.  Tell them you truly want to pay, but for whatever reason you find yourself in a tight spot and need a little help while you work your way out of it.  That's the first step in credit repair.

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Most every lender will be willing to agree to some adjustment in your payment schedule to help your over a rough spot.  After all, they just want their money returned.  It is not in their best interest to lose you as a customer.

The lender may reduce the amount of your payment for a few months, or they may allow you to skip a few payments and add them to the end of the payment period (but not often).  In extreme cases the lender may even reduce the amount of your debt.

When you are about to miss a payment you show your good faith by contacting the lender before that happens.  Sure, that does not please the lender, but it's much better than missing the payment and forcing the lender to contact you.

Live Up To Your Promise

You build good credit by always living up to your promise to repay.  You begin destroy your credit with your first late payment and your credit history can go down from there.  A free credit report will allow you to stay current with your credit history and see if you rating is going up or down.

You begin to repair your credit by always contacting your lenders and explaining the financial pinch you find yourself in.  They are usually willing to work with someone who is willing to work with them.  It is expensive to mount a collection campaign against the financially irresponsible and all lenders will go out of their way to fix a problem before it gets to the collection stage.

If you have more than one bill past due contact all your lenders and let them know you are now ready to change your financial habits and get your debts paid off.  Every lender wants to be paid back first, but you can explain that you first must bring current payments on your rent, utilities and car.  That will allow you to continue in your job and earn the money to begin paying all your lenders.

Secured and Unsecured Debts

A secured loan is a loan where you have purchased something the lender can take back if you don't pay.  The two secured debts agreed to by most consumers is the mortgage on their home and the payment contract on their car or boat.  These must be paid first or you lose those items.  

Unsecured debts like those of your credit cards usually give you more room to work something out with the lender.   It seems like the worst that can happen is that you lose the use of your credit cards.  Sometimes there are further consequences.  You may find that you are in violation of some of your other credit contracts if you default on any debt payment.  Those defaults show up on your credit report where all can see them. That's why it is very important to contact all creditors and let them know you are trying to work your way out of the problem.

Interest Only Payments

Some credit card companies will allow you to make interest only payments on your card balance. A few credit card companies will even let you keep your card as long as you continue to make the minimum interest payment.  Just don't be tempted to run up more debt on that card.

Before you do anything you should sit down and go over your income and necessary expenses.  You've gotten into this financial mess because you did not have a budget.  You were spending money you didn't have and you really didn't know where it was going.

With a budget you an explain to your lenders exactly how much money you now have for bill paying and how much you can pay to each while you try to catch up.  At this point it is a very good idea to get a part time job to help you get back on track faster.  If you do that be sure you tell your lenders.  They want  to know that you are serious about paying off your debts.

Consolidate Credit Card Bills?

Be very careful about getting a credit card consolidation loan.  Yes, you will see ads from lenders offering debt consolidation loans, but don't do anything like that until you have received advice from an organization that does not make loans and is not connected to a debt consolidation lender.  Not everyone in this game can be trusted.   Debt consolidation may be your answer, but you need expert, impartial advice before you will fully understand what you are getting into.

That brings us to credit counselors.  They are there to help you pay off your bills and begin repairing your credit. If the counseling company is good and honest they will work  with your creditors to resolve payment problems. They understand how to help you work out  agreements with your creditors. 

If you belong to a church you can ask for a referral to Christian credit counseling service.

Credit Counseling Services

Often a credit counseling service will require a low fee for their services and provide you with a complete financial plan and budget.  Many of these services can even help you manage your money, so that you don't slip by into the credit trap.

Life is easier with a repaired credit history.  Once you get to work clearing up your bills you will feel better, your lever of stress will be greatly reduced and you will be so much happier.  So, what are you waiting for.

 Consolidate Credit Card Bills